Bollinger on Bollinger Bands

Submitted by Book Library on 13 May, 2010 - 00:08

'All in all, "Bollinger on Bollinger Bands" is a gem...within 10 minutes of opening it, it went on my list of the five best technical analysis books ever' - Active Trader. This is the first comprehensive traders' guide to using Bollinger Bands from the man who created them. It includes a handy Bollinger Bands reference card. Over the past two decades, thousands of veteran traders have come to view Bollinger Bands as the most representative and reliable tool for assessing expected price action.

Now, in the long-anticipated Bollinger on Bollinger Bands. John Bollinger himself explains how to use this extraordinary technique to effectively compare price and indicator movements.

Traders can look to this techniques-oriented book for hundreds of valuable insights, including: analysis of the primary indicators derived from Bollinger Bands percentage b and BandWidth; how traders can use Bollinger Bands to work with instead of against commonly encountered trading patterns; strategic use of Bollinger Bands in short-, mid-, and long-term trading programs; three trading systems based on Bollinger Bands; and, the essence of successful investing is to determine when a stock's price is too high or too low and then act accordingly.

While John Bollinger would be the first to argue that no techniques exist for definitively determining these levels, "Bollinger on Bollinger Bands" presents an insider's examination of the one tool that if its widespread popularity is an accurate judge of its effectiveness comes closer than anything else. Concise yet comprehensive, it is one of today's truly indispensable investment guidebooks. 'The purpose of this book is to help you avoid many of the common traps investors get caught in, including the buy-low, sell-high trap, where the investor buys only to watch the stock continue downward or sells only to watch the stock continue upward. Here, the traditional, emotional approach to the markets is replaced with a relative framework within which prices can be evaluated in a rigorous manner leading to a series of rational investment decisions without reference to absolute truths.

In the 1970s, market newcomer John Bollinger couldn't find a system of investment analysis to fit his belief that all market events exist only in relation to one another and that there are no absolutes. So he created his own. That approach Rational Analysis led to the establishment of Bollinger Bands and ensured Bollinger's spot in investment analysis history. Now, in "Bollinger on Bollinger Bands", John Bollinger explains the market conditions that led to his initial discovery, and gives readers the inside story of the development and refinement of Bollinger Bands.

Positive Review of Book

Beeing a Bollinger Band enthusiast for many years, I found it very helpful to read from the creator of the bands how to interpret and use them. There are many ways to use BBs, but the book has helped me to understand and confirm some thoughts of my own. Mr Bollinger describes about M and W formations and how BBs can help you understand and foresee them better. He introduce a new concept to me, normalized indicators and also new indicators derived from the bands themselves.

All these indicators come with complete formulas for you to create yourself in your preferred technical analysis program if you want to. He also explains three different strategies were you can use BBs and decribed indicators as systems for your trade. This book is now definately one of my favorites and I will read parts of it over and over again.

Negative Review of Book

I forced myself to read throughout this book. The closely relavant information about Bollinger bands in this book is something like 10 to 15 pages, some of can be found in standard TA books. I believe the Author should have written a TA book and included Bollinger bands as its one chapter. It is so boring to read a book made of by extending a chapter of it to a book.

Author Biography

John Bollinger is president and founder of Bollinger Capital Management, an investment management company that provides technically driven money management services to individuals, corporations, trusts, and retirement plans. Bollinger publishes Capital Growth Letter and provides weekly commentary and analysis on CNBC, and was for years the chief market analyst on Financial News Network.

He is both a frequent contributor as well as a featured expert for publications including The Wall Street Journal, Investor's Business Daily, Barron's, Technical Analysis of Stocks and Commodities, The New York Times, Los Angeles Times, and USA Today.

Table of Contents

  1. In the beginning
  2. The basics
  3. Bollinger bands on their own
  4. Bollinger bands with indicators
  5. Advanced topics
  6. Summing up

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